GBP / USD sideways around 1.3000 as the US dollar consolidates

• US elections: Biden consolidates his leadership in two key states.
• The pound stable around 1.3000, with no clear direction.

The pair GBP/USD It is moving sideways around 1.3000 as the US dollar consolidates across the board and traders await election results that now show candidate Joe Biden as the most likely winner.

Wall Street is rising sharply with the Dow Jones growing 2.63%. Crude oil gains 3.40%. The bold optimism seen in equities is not present in the forex market right now. The US dollar shows lower gains against commodity currencies and also against its main European rivals.

Market participants mostly ignored US economic data ADP reported that private sector payrolls rose 365,000 below the expected 650,000. Attention continues to be paid to elections.

Democratic candidate Joe Biden was about to take over Wisconsin and increase his leadership in Michigan. Both states could open the doors of the White House. Still, the margin between him and President Trump is very narrow, so while there are votes to count, a definition could take longer.

In the UK, legislators approved a blockade for England for a period of one month. The pound was stable, maintaining modest losses against the dollar and also the euro. Wednesday’s report showed that COVID-19 cases rose to 25,177 from 20,018 the day before.

Bank of England official will announce his decision on monetary policy on Thursday at 07:00 GMT. “We are looking for an unchanged bank rate and £ 120 billion of QE. The risks of a rate cut to 0% have increased with Lockdown 2.0, ”explained TDS analysts.

From a technical perspective, GBP / USD is moving sideways with a slightly bullish bias as long as it remains above the 1.2880 / 1.2900 area (horizontal support, uptrend line and 100-day moving average). A firm break to the downside should clear the way for more losses. On the upside, immediate resistance is seen at 1.3070, followed by 1.3150.